Taiwan Economic Sentiment Weakens

Sentiment toward Taiwan’s economy weakened in May after the composite index of monitoring indicators fell slightly at the end of March, a poll released by Cathay Financial Holding Co. said Monday, CNA reported. Citing the results of the survey, Cathay Financial said about 19% of respondents said current economic conditions were better than they were from six months ago, while 45.6% said the economy was worse. The result translated into an economic optimism index on the current economy of minus 26.7, down from minus 16.8 seen in a similar poll conducted in April. It was the third consecutive month that the index moved lower, Cathay Financial said. In addition, the economic optimism index on the economic outlook over the next six months also fell to minus 27.8 in May, from April’s minus 20.8, the survey found. The May index fell to its lowest level in 29 months, Cathay Financial said. The weakening confidence seen in the latest survey, which was conducted from May 1 to 7, came after the National Development Council reported in late April that the composite index of monitoring indicators for March fell 1 point from a month earlier to 23, though it still flashed a “green light,” signaling steady growth.